Autodesk Stock Falls Despite Developer Investments

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The late morning trade on Thursday saw the Autodesk Inc (ADSK) stock fall by a little over 1.05% to despite the news that the software developer is planning to add to its cloud solution through the addition of tools and services.

Vice president of cloud products at Autodesk, Scott Reese said “For the past 35 years, Autodesk has been creating design tools to help people design the world around us, the last several years, it’s been about the cloud, social and mobile that have changed how people work, collaborate and access data. One of the obstacles in design engineering was compute power. The cloud has given us the ability to re imagine what design means and re imagine workflow for manufacturing and construction—two of the big areas for us in the cloud.”

June 15 marks the start of a two-day developer program in San Francisco to present the latest developments in the online platform, Forge (a group of cloud based services connecting developers and users to a range of workflows), which delivers services to software and app developers. Autodesk plans to announce three start-up investments – 3D Robotics (makers of drones), Seebo (developers of Fusion 360 and Fusion Connect), and MakeTime (CNC machine software).

SVP of Products at Autodesk, Amar Hanspal said “It is clear to us that there is an enormous demand for an easy-to-use and scale able platform to build all sorts of manufacturing and AEC applications, there are endless opportunities created by a combination of our web service APIs and entrepreneurial developer talent.” Developers are being encouraged to try Forge through a promotion offering free use of the platform until the middle of September this year.

Mixed results for the company have left analysts with little reason to believe the stock is likely to move one way or another, and that fundamentals support sufficient stability and predictability to maintain a ‘hold’ status on this share.

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Stacked up against first quarter last year, this year net operating cash flow increased by 90.05% to $164 million, this exceeds the average cash flow growth rate of the industry of 33.13%. The share price today is higher than for the same period last year and has outperformed the increase in the S&P 500. Revenue, however, fell faster than the 10.2% industry average by 20.8%. The change in net income for same period under performed the industry and S&P 500 and dropped from $19.10 million to -$173 million or by 1005.8%.

The highly knowledge intensive US software industry is influenced by the ownership of intellectual property, perpetually under threat as a result of piracy due to copyright violations and illegal reproduction and transfer of software. Mass market demand for software applications, and significant improvements in available hardware, improving storage and processing speeds; have underpinned major changes in the industry for many years.

Whilst the software industry is affected by the world economy, it is well positioned for positive growth, with China and India responding to software developer interventions to reduce input costs. These two countries now account for a quarter of the global outsourced market.